Meaning of Ownership

The relationship between a person and property and the right that’s
vested in him is referred to as ownership. The right to a property is the
only thing that can be owned. To put it another way, a thing cannot be
owned but can have a right over it. Ownership, according to Hebert, is a
broad right in rem. It’s a collection of four rights:

1. The right to use something.

2. The right to prevent others from utilising the item.
3. Right to dispose of the item.
4. The right to destroy the object.

Modes of Acquisition of Ownership

The ownership can be acquired in two ways:

Original Mode

The owner obtains ownership of something that does not have an owner.
They’re known as res nullis. No one could claim ownership of such a
thing. It can be obtained through admittance, occupation, or
specification. For example: Mr A took the registry of the land that does not
have an owner.
Derivative Mode

In this form, the owner purchases the property from the prior or original
owner. It is only a transfer of existing ownership, not a relationship of
ownership, in which the buyer obtains ownership from the seller. For
example: A purchases a house owned by B after completing all the
formalities.

Kinds of Ownership
Ownership can be classified into different ways given below:

Corporeal and Incorporeal Ownership

The ownership of a material object is corporeal, while the possession of a

right is incorporeal ownership. Corporeal ownership is the possession of a
house, a table, or a machine. Copyright, patent, and trademark ownership
are all examples of incorporeal ownership.

Trust and Beneficial Ownership

Property that is owned by two people at the same time is known as trust
property. And, if the relationship of two owners is such that one of them is
obligated to use his ownership for the benefit of the other is known as
beneficial ownership. For example: A and B jointly holds the shares of XYZ
Ltd. Due to some urgency, A wanted to sell his stocks. Therefore, A and B
both will jointly sell off their stocks.
Legal and Equitable Ownership

Legal ownership refers to ownership that is based on common law

principles. In contrast, equitable ownership is where B was given debt by
A. B becomes an equitable owner, and A becomes the legal owner.

Vested and Contingent Ownership

Vested ownership refers to ownership that takes effect right away. For
example: A gives his possessions to B, an unmarried daughter, for the rest
of her life, and C, an unborn child. Because C’s birth is unknown, his
ownership is contingent. Here, giving possessions to B is a vested
ownership as it took place right away without any delay, whereas giving
possessions to C is a contingent ownership because C is an unborn child,
and this event will take place in the future.

Sole and Co-Ownership

Sole ownership refers to an individual’s exclusive ownership of a piece of

property as opposed to the entire globe. Co-ownership refers to the
ownership of a property or thing by two or more people who have an
interest in it.

Absolute and Restricted Ownership

Absolute ownership is where the owner enjoys all the ownership rights
without any restrictions. In other words, absolute ownership refers to
ownership that vests all rights in an item to the exclusion of all others.
Limited ownership refers to ownership that places restrictions on the
term of usage or the disposal of ownership rights.

Meaning of Possession
Custody or control is synonyms of possession. The concept of ownership
evolved slowly as society progressed. Possession, according to Roman
Law, is prima facie evidence of ownership. It backs up the ownership title.
The owner of an item is assumed to be the person who has it. Long-term
use of property results in ownership.

Kinds of Possession
Possession can be classified into two ways explained below:

Possession in Fact

It refers to a person’s actual or physical possession of an item. De facto

possession is another term for it. It denotes a person’s physical control
over something. There could be a physical connection between the thing
and the individual. This physical relationship or control does not have to
be ongoing. For example: X is carrying a mobile phone in his pocket. This
denotes that the cellphone is in possession of X.
Possession in Law

It refers to property that has been recognised and protected by the law.
It’s also known as de jure possession because it’s a legal possession. For
example: Mr A has legally purchased a white Maruti Suzuki, which means
that the car is in his legal possession.

Elements of Possession
Animus possidendi and corpus possidendi are the two elements of
possession. Let’s discuss these below.

Animus Possidendi

This term refers to a person’s desire to own something. It is concerned

with the subjective and mental desire to possess something. It is
concerned with the subjective and mental aspects. It expresses a great
desire to own something. The possessor must have a strong desire to
possess something, and he must have an exclusive claim. Animus
possidendi does not have to be a claim or right, and it does not have to be
a personal claim. For example: A has a strong desire to possess the
biggest house in his area.

Corpus Possessionis

It refers to the physical possession of an object and is concerned with the

objective element. Corpus possessionis, according to Savigny, is genuine
physical control over a thing. The presumption is that others will not
interfere with physical control. The possessor must be present physically
and personally. Accessories are included in possession of a thing.
Protection and object secrecy are included in possession. For example: Mr
X has possession of a .... Types of Possession

Representative Possession

Representative possession is when you have possession of something

through an agency or a servant. In representative possession, the person
is not the true owner of the property. For example: Master’s money in the
servant’s pocket.

Concurrent Possession

A thing can be jointly owned by two or more people at the same time.
Concurrent possession is the term for this situation. For example: A and B
are brothers and jointly own a house.

Derivative Possession

Derivative possession refers to the possession of the holder of a thing. He

gets his name from the person who entrusts the item to him. For
example: A watchmaker. He is not required to return the watch until the
repair costs have been paid.
Constructive Possession

Constructive possession is the legal term for possession. It isn’t something

you own. It is legal possession, not physical possession. For example: The
possession of a car’s keys suggests ownership of the vehicle.

Adverse Possession

Adverse possession is when you hold possession of property against

everyone else who has or claims to have a claim to it. It is the taking of
anything without the authorisation of the rightful owner. For example:
After the lease period has expired, the lessee takes control.

Duplicate Possession

Duplicate possession refers to the possession of an item by two people.

One person’s possession is compatible with another person’s
possession. For example: Trust property that is owned by two people at
the same time.

Possession Without Ownership

There may be rights that exist in reality but are not recognised by the law.
As a result, while one may be in lawful possession of an object, he or she
may not have any title to it, i.e., no ownership. For example: Intellectual
property rights may exist even if they are not recognised as legal rights.
 Ownership Without Possession
Some rights can lawfully be owned but not possessed. These are referred
to as temporary rights. These rights can’t be owned because they can’t be
exercised without destroying them. In the case of Rahimtoola vs Nizam of
Hyderabad (1958), the creditor, the Government of Pakistan, was said to
be in “possession and control” of the right to recover a bank loan.

Difference Between Possession and Ownership

Ownership: It is an absolute right.
Possession: It is evidence of ownership.

Ownership: It is de jure recognition of a claim. De jure means by right. Or,

existing or holding a specified position by legal right.
Possession: It is a de facto exercise of fact. De facto means it exists, even
though it may not be legally accepted as existing.

Ownership: It is the guarantee of the law.

Possession: It is the guarantee of the fact.

Ownership: It is related to a right.

Possession: It is related to a fact.
Ownership: It includes possession.
Possession: It does not include ownership.

Ownership: It excludes interference.

Possession: It excludes others except for the owner.

Ownership: It is developed on possession.

Possession: It is developed with civilisation.

Ownership: It provides proprietary remedies.

Possession: It provides possessory remedies.

Ownership: Its transfer is too technical.

Possession: Its transfer is less technical.

Conclusion
People often get confused with the terms “possession” and “ownership”.
But these are very different concepts having different meanings. Property
is a concept that has existed since the dawn of human society. It has
undergone a significant transformation over the years, and ownership
and possession combine to complete the definition of property.
Therefore, understanding the meaning and difference between both the
terms is very important in order to understand the term “property”.

I hope this law note was insightful.